Sacramento Realtors

Have you ever wondered if there is a value difference between a single-story house and two-story house? Is it proper to list your home at the same price level as a similar-sized house that has one extra level?

I asked some Sacramento area real estate pros to pitch in a few thoughts, and here is what they said:

Sue Galster – Realtor/Broker: By default, a one-story house appeals to a wider range of current home owners and future buyers than a two-story house. Rarely if ever do I meet a buyer who says they need or prefer a two-story house, but it’s quite common to hear that a one-story is a non-negotiable. With the aging of the Baby Boomers and people living longer, I believe more home owners will require a one-story house for health and safety reasons so that stairs aren’t an issue in their lives.

Steve Ostrom – Realtor/Broker:Over 30% of my clients say they must have a one-story. Another 40% say they prefer a single story. That is around 70% targeting single story. The number one reason they state is that they are getting older and worry about having to climb stairs later in life. The second reason is energy costs of a two-story. My reason is that my wife has a history of falling down stairs. Regardless of the reason, there is much more demand for single story homes than two-story, and supply and demand ultimately determines value.

Whitney Johnson – Realtor: I do think that if you are willing to purchase a two-story home on a same or similar lot size as a single story home, you will obviously get a larger lot, which could be a benefit. We have never taken a number of stories into consideration when comping our properties. We tend to go off the basics, bed, bath, sq ft. When I asked around office it was pretty split. Some would take a single story all day long and have a smaller lot. The other half would prefer a two-story larger lot. Both sides agreed the pricing should be the same.

Jeff Grenz – Realtor/Broker: Single level homes are always in high demand. They typically reach every end of the market from entry-level to empty nester…. so when demand is hot, the single levels typically go first, and when demand is slack, again, the single levels typically go first, leaving more excess inventory in the multi-story homes – unless the prices get adjusted to make multi-story homes a better buy. It actually costs less to build a two-story home vs a single level in most cases, given the same square footage and amenities, so builders are often able to balance the higher demand for single level homes with the better pricing for two-story homes. So if square footage is your measure of “value” than a two-story home, as efficiently shaped as possible, will give you the best “value” – a definition of an efficient building shape? Think “salt box” like the east coast. If accessibility is more valuable, and IMHO, higher demand for resale, then single levels are the best “value”.

Craig Dunnigan – Realtor/Broker: I have always held the opinion that single story homes sell for more money than a two-story of equal size….this is based on observing sales trends for over 35 years…. my opinion was confirmed today at our sales meeting. Our agents unanimously stated that single story homes are in higher demand and sell for more than most two-story homes…. The aging “baby boomers” don’t want to be walking up and down stairs. The bottom line is “supply and demand”…..there is not a vast supply of single story homes coupled with a high demand!

My take as an appraiser: I tend to compare single-story with single-story and two-story with two-story because there is sometimes (not always) a difference in value. Unfortunately there is no universal value adjustment given for a variance in stories because it really depends on the neighborhood as well as supply and demand. I have noticed among higher-end tract homes that buyers typically pay a premium for single-story units. As an example, a buyer would very likely pay more for a 2800 square-foot single-story house than a 2800 square-foot two-story house with similar updates. Whatever the case, it’s usually best to start a market comparison by using single-story comps when appraising a single-story house and two-story comps for a two-story unit. This tends to give us the best picture for value because we’re comparing “apples to apples” so to speak.

Question: Is there any price difference in your mind? I’d love to hear your take in the comments below.

This might sound like a really liberal idea to friends in other parts of the country, but we cannot use wood burning fireplaces every day in the Sacramento area. What do I mean? It is illegal on certain days to burn wood or pellets depending on the air quality, which essentially means you can be fined if you burn on a “no burn” day.

The Sacramento Metropolitan Air Quality Management District states “Residents and businesses are restricted or prohibited from using indoor or outdoor fireplaces, wood stoves, fire pits and chimneys that burn wood, pellets, manufactured logs or any other solid fuel, when fine particle pollution is forecast to be elevated. It is your responsibility to Check Before You Burn.”

Photo from Realtor Micah Baginski of a recent house he flipped.

Real estate questions: Whether you agree or disagree with the rule for burning, there are some implications for real estate, which leads us to ask the following questions. Since wood-burning fireplaces cannot be used as often in light of “no burn” days in Sacramento, are they still an asset? How much weight are buyers giving fireplaces in today’s market? Is it a good idea to ever remove a fireplace? I asked a handful of local real estate pros to share some thoughts on the topic, and here is what they had to say. I’d love to hear what you think in the comments below.

Kyle Groves – Realtor Fireplaces are truly subjective. I have clients who want a wood burning, some who would remove it, some who would stick in an insert. Some want a fireplace just to put a TV over. I don’t think there is an overwhelming majority either way. Personally, with the limited ability to use wood burners, they’ve become obsolete, and more of a nuisance. Buyers can easily build a fireplace, with an insert, wherever they want, and it’s a much more efficient, usable option.

Bruce Slaton – RealtorFireplaces define a room for Buyers. There is nothing better than attending a family holiday and everyone gathering around the fireplace to socialize. I would say a fireplace in most Buyers profiles are preferences but not always necessarily a deal breaker or a must have. An HPBA Survey in 2012 said “In 2012, 36 percent of homeowners said their fireplace or stove was a major factor in choosing to purchase and/or live in their current home”. That’s up from 12 percent just 10 years ago, according to the HPBA report. The issues Sellers come across when reselling is they do not maintain the chimney maintenance and burn the wrong type of materials, which contributes to build up and possible fire safety issues. Sellers should always have a qualified chimney cleaning and inspection done months before placing their home on the market in order to remedy any issues with the chimney prior to any Buyer inspections. Maintaining documents and/or warranties are another thing a Seller should do as many homes have older fireplace inserts with no information or maintenance suggestions.

Kellie Swayne – RealtorIn the older neighborhoods in Sacramento where I specialize, like Land Park and East Sacramento, a fireplace is a fixture that is a part of the “traditional charm” that draws people to these areas. While many homes in these neighborhoods have been built without a fireplace, there is certainly the feeling that something is “missing”. I have worked with several buyers over the years who insisted on a fireplace as a feature in their home, even when they did not always intend to use the fireplace. I believe that fireplaces are an asset to these homes, even when they are not being used much. A fireplace can enhance the charm, ambiance and feel of a home. I have seen many fireplaces that have become a part of the decor in a home by adding candles, candelabras, and other creative pieces when they are not being used for fires. In most cases, I would recommend against removing an existing fireplace.

Tamara Dorris – Realtor The new burn laws are certainly something that people are unhappy about, however, I recently sold a home in Auburn and they’ve had special wood burning stove laws in effect for a while now. In my experience people still like fireplaces, and I would go so far to say that in the luxury market, people practically insist on them. I think in median price ranges, especially in this competitive market, that buyers will “settle” for no fireplace if they have to sacrifice something. And, in a seller’s market, sacrifice or compromise is a given. I would never recommend taking a fireplace out; mostly, due to the expense, and structural impact. Regardless of burn laws, something about a fireplace and a mantle with family photos on it just seems to make a house more of a home.

Jeff Grenz – Realtor Fireplaces are a focal point for homes in higher price ranges. Much design time and money goes into these features. At the affordable level, there are definitely higher priorities for the money, so these features can certainly be bypassed, especially now that wood burning fireplaces have restricted use.

Erin Stumpf – Realtor I think the majority of Sacramento home buyers prefer homes with fireplaces. In fact, I have had several clients pass on purchasing nice homes without fireplaces in favor of other homes that do have them. The fireplace frequently is the center piece or focal point of a living room – often adorned with photos and such, holiday items, family heirlooms, etc. Additionally it can provide an additional source of warmth during cold weather, and makes for a nice place to gather. Most folks I work with do not mind the “Check Before You Burn” program in Sacramento, and I direct my clients to sign up for “Air Alerts” so they know which days they are permitted to burn fires (by the way, Erin has a post on the importance of chimney inspections that you might want to check out).

Questions: How important is a fireplace to you when purchasing a home? What do you think of the “check before you burn” campaign? Anything you’d like to add? Comments are welcome below.

You know what they say when you’re hunting for love? Look closely. When you don’t, or if you intentionally ignore the red flags, there can be major trouble ahead. The same is true in real estate. If you don’t look closely when shopping for a home, or you don’t know what to look for, it can end very badly for your wallet.

I asked five Sacramento Realtors for their take on what buyers should look at carefully during the home-buying process, especially when purchasing a flipped property. I see these things all the time on appraisal inspections, so this is definitely important to pay attention to.

Max Boyko – Realtor: Here are some things that get missed that I would consider important: Insulation (although can always be blown in later); Remodeled home but may have original plumbing and electricity which may leak; Roof leaks may get covered by paint on the inside; and Showers and bathtubs are rarely tested to make sure they are leak proof.

Sheri Negri – Realtor: Here are some things I help my buyers look at in general and especially on homes that have been flipped and are poor quality: I look for signs of dry rot inside and outside the home. Sometimes dry rot is masked by a bad paint job, but even then you can tell if you look closely and feel the wood in most cases. I look at any water stains on the ceilings or walls that indicate a leak somewhere. I look to see how stable or unstable the fence is in the backyard and whether or not any repairs need to be done. I look for potential FHA flags such as: is the firewall completely drywalled, are the junction boxes covered, is the hot water heater strapped, are there any leaks in any of the toilets, do faucets work, potential roof issues, areas that need caulking, etc. I check underneath the sinks to ensure there are no major leaks. I check to make sure the bathrooms don’t have any signs of water damage. I take a close look at the water heater and HVAC to see the visual condition. I look at the roof from the front and the back to look at the visual condition to see if there are any major issues that might need to be repaired. I look for any cracks inside and out that might be more than the house settling. If a flipped property, I look for how they remodeled the cabinets, counter tops, flooring, doorways, trim, and the like. I also look for room additions where they may not have put heater/air vents, or electricity. Many flippers do a poor job at finishing bathrooms and kitchens, so I like to point out any flaws I see to my clients.

David Yaffee – Realtor: In today’s real estate market, many buyers are quite excited to see a flip property after viewing foreclosures and short sales, as a lot of foreclosures & short sales need cosmetic work or more. Flips can seem like a dream as you are getting a mostly updated home, but it is important that buyers keep in mind these homes are not perfect. Don’t let new appliances, flooring, paint etc stop you from looking at the home in detail. Some of the people who flip homes do not obtain permits for the work done, use non-licensed workers, and change the original layout of kitchens & bathrooms. This does not mean the home is going to fall down or the work is bad, but it is important to make sure you properly inspect the property. During your inspection make sure to ask your inspector if the work appears to be up to code. I often see that the type of vent or flue pipes used being called out by home inspectors as they are not the proper type. I also encourage my buyers to looks at the quality of the work because if it looks poor, chances are there are other flaws with the work done. If it is not provided to you when receive disclosures, have your agent ask the listing agent for any documentation that can provided on the work that was performed at the property. Investor flip properties are often beautiful homes and great opportunities for buyers, but you still need to inspect and protect yourself from potential issues.

Jeff Grenz – Realtor: All these items I see regularly in flips – as in I saw all these in the last 10 days on 3 different homes. All are code violations and so simple and well understood by licensed plumbers and building inspectors that if missing or improper, they are clear signs of problems.

Water Heater Installation problems: Vent in direct contact with a combustible (aka wood) as the requirement is 1″. Straps are loose and/or the tank moves in any direction (it must be braced or snug at rear also). Missing TPR (temperature and pressure relief) line -OR- it requires water to flow uphill (the TPR exits the water heater usually on the top and water must flow level or down hill until it exits outside, normally with a copper line).

Walking through homes with recent rehab, I look for steps that are even, consistent and feel like I expect them, stair railings that are firm, hoods that are at least 30″ above and the full width of gas ranges below (check manufacturers specs). Toilets set firm.

Another easy check, go online for building permit records vs. age of roof, water heater, HVAC. If there are no permits within the past 20 years, but any of those look newer, its time to inspect more closely, as lack of permit is a pretty good indicator of lack of license and skills.

Bruce Slaton – Realtor: Exposed white PVC outside, is this the correct grade for exposure or could it lead to broken pipes? Duct tape on anything electrical or for that matter anything. If they walk into a room and it reminds them of a patio or the materials are different from the interior of the house, could be a red flag of a converted patio or addition. Any cracks that they can stick a quarter in. Dirty AC filters, this could: a) Be a sign of deferred maintenance; and b) Could lead to a home warranty repair denial later. Pet urine damage on exterior of AC condenser. Storage in the rafters of the garage. Lofts in condos being used as living space. For that matter, hot water heaters in rooms. Fences that look like they are at the end of their life, good idea to talk to that neighbor before and see if it will be your cost or shared. Last but not least NEVER accept your agent telling you “don’t worry about it, the home warranty will cover it”, chances are it will not because it is pre-existing. Always get a professional home inspection.

I hope this was helpful. I’d love to hear your thoughts in the comments below.

Questions: Anything you’d add to the list? Have you ever bought a home only to find out something was wrong? What will you look at more closely during your next home purchase?

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